Ken Griffin, founder and CEO of US hedge fund Citadel, has announced that he holds a 4.5% stake in Nasdaq-listed firm Solana-focused DeFi Development.
According to a Schedule 13G filing with the U.S. Securities and Exchange Commission (SEC), Griffin possesses just over 1.3 million shares, which represents approximately 4.5% of DeFi Development’s outstanding common shares.
DeFi Development's Position in the Solana Ecosystem
DeFi Development Corp. holds the position of Solana’s second-largest treasury company. The firm has been actively accumulating Solana (SOL) and currently holds over 2.19 million SOL.
Shifting Stance on Cryptocurrencies
Ken Griffin and Citadel's involvement represents a significant development, particularly given Griffin's historical skepticism towards cryptocurrencies and his company's established background in traditional finance.
Griffin’s 4.5% stake in DeFi Development, a Solana treasury firm, adds another prominent institutional name to the Solana ecosystem.
Although Citadel has not directly engaged in cryptocurrency trading, its investment in DeFi Development signals a potential evolution in its approach to digital assets.
While Griffin's current holdings are relatively modest when compared to Citadel's overall portfolio, they illustrate a scenario that was once considered unlikely for the company.
This move contrasts with Griffin's past statements where he described cryptocurrencies as a “declaration of war” against the US dollar, suggesting a gradual shift in his perspective.
Market Implications and Expert Opinions
Industry experts have observed that hedge funds and institutional capital are increasingly entering the cryptocurrency market indirectly. This is being achieved through investments in publicly traded companies that are involved with Decentralized Finance (DeFi).
Experts also noted that "with Solana's network growth, interest in the capital markets will continue to grow."